Scribd Logo
Upload

Welcome to Scribd!

  • Accounting Assignment Chapter 13 Answers - 5

    Uploaded by

    alexie aurelio
    15 views3 pages
    1) Kiwi Charter Corp. reported $3,152,040 in profits for 2020 and paid $211,000 in preferred dividends. It had 108,000 preferred shares and 600,000 common shares outstanding on January 1, 2020. 2) During the year, it issued a 10% common stock dividend, sold 163,000 common shares, sold 50,000 preferred shares, and sold 44,000 common shares. 3) Earnings per share for the year was $3.79 based on weighted average common shares of 776,000 and earnings available to common shareholders of $2,941,040.

    Original Description:

    Accounting Assignment Chapter 13 Answers

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1) Kiwi Charter Corp. reported $3,152,040 in profits for 2020 and paid $211,000 in preferred dividends. It had 108,000 preferred shares and 600,000 common shares outstanding on January 1, 2020. 2) During the year, it issued a 10% common stock dividend, sold 163,000 common shares, sold 50,000 preferred shares, and sold 44,000 common shares. 3) Earnings per share for the year was $3.79 based on weighted average common shares of 776,000 and earnings available to common shareholders of $2,941,040.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    15 views3 pages

    Accounting Assignment Chapter 13 Answers - 5

    Uploaded by

    alexie aurelio
    1) Kiwi Charter Corp. reported $3,152,040 in profits for 2020 and paid $211,000 in preferred dividends. It had 108,000 preferred shares and 600,000 common shares outstanding on January 1, 2020. 2) During the year, it issued a 10% common stock dividend, sold 163,000 common shares, sold 50,000 preferred shares, and sold 44,000 common shares. 3) Earnings per share for the year was $3.79 based on weighted average common shares of 776,000 and earnings available to common shareholders of $2,941,040.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    11/19/21, 8:44 AM Assignment Print View

    Score: 50/50 Points 100 %

    https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252715540993014&wid=1325271688… 1/3
    11/19/21, 8:44 AM Assignment Print View
     
    5. Award: 3 out of 3.00 points  

    Kiwi Charter Corp. reported $3,152,040 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred
    dividends of $211,000. On January 1, 2020, Kiwi had 108,000 and 600,000 outstanding preferred and common shares,
    respectively. The following transactions changed the number of shares outstanding during the year:
     
    Feb.  1 Declared and issued a 10% common share dividend.
    Apr.  30 Sold 163,000 common shares for cash.
    May   1 Sold 50,000 preferred shares for cash.
    Oct.  31 Sold 44,000 common shares for cash.

    a. What is the amount of profit available for distribution to the common shareholders?

    $
    Earnings available to common shareholders 
    2,941,040

    b. What is the weighted-average number of common shares for the year?

    Weighted-average outstanding shares 776,000 

    c. What is the earnings per share for the year? (Round the final answer to 2 decimal places.)

    Earnings per
    $ 3.79 
    share

    References

    Worksheet Learning Objective: 13-03


    Calculate earnings per
    share and describe its
    use.

    Kiwi Charter Corp. reported $3,152,040 of profit for 2020. On November 2, 2020, it declared and paid the annual preferred
    dividends of $211,000. On January 1, 2020, Kiwi had 108,000 and 600,000 outstanding preferred and common shares,
    respectively. The following transactions changed the number of shares outstanding during the year:
     
    Feb.  1 Declared and issued a 10% common share dividend.
    Apr.  30 Sold 163,000 common shares for cash.
    May   1 Sold 50,000 preferred shares for cash.
    Oct.  31 Sold 44,000 common shares for cash.

    a. What is the amount of profit available for distribution to the common shareholders?

    https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252715540993014&wid=1325271688… 2/3
    11/19/21, 8:44 AM Assignment Print View

    Earnings available to common shareholders $ 2,941,040

    b. What is the weighted-average number of common shares for the year?

    Weighted-average outstanding shares 776,000

    c. What is the earnings per share for the year? (Round the final answer to 2 decimal places.)

    Earnings per share $ 3.79

     
    Explanation:

    a.
           
    Profit $ 3,152,040  
    Less: Preferred dividends   211,000  
    Earnings available to common shareholders $ 2,941,040  

    b.
    Effect of
    Outstanding Share Fraction Weighted
    Time Period Shares   Dividend   of Year   Average  
    January 600,000   × 1.10   × 1/12  = 55,000  
    February – April (600,000 × 1.10) 660,000   × 1   × 3/12  = 165,000  
    May – October 823,000   × 1   × 6/12  = 411,500  
    November – December 867,000   × 1   × 2/12  = 144,500  
    Weighted – average outstanding shares                776,000  

    c.
           
    Earnings available to common shareholders $ 2,941,040  
    Divided by weighted - average outstanding shares ÷ 776,000  
    Earnings per share $ 3.79  

    https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252715540993014&wid=1325271688… 3/3

    You might also like